Financial Information by Segment (Tables)

6 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Financial Information by Reportable Segment

Financial information by reportable segment is as follows:

	Reinforcement Materials		Performance Chemicals		Purification Solutions		Segment Total		Unallocated and Other(1)			Consolidated Total
	(In millions)
Three Months Ended March 31, 2023
Revenues from external customers(3)	$	672	$	326	$	—	$	998	$	35		$	1,033
Income (loss) before income taxes(4)	$	122	$	28	$	—	$	150	$	(40	)	$	110
Three Months Ended March 31, 2022
Revenues from external customers(2)(3)	$	654	$	363	$	36	$	1,053	$	39		$	1,092
Income (loss) before income taxes(4)	$	101	$	70	$	—	$	171	$	(24	)	$	147
Six Months Ended March 31, 2023
Revenues from external customers(3)	$	1,315	$	612	$	—	$	1,927	$	71		$	1,998
Income (loss) before income taxes(4)	$	216	$	57	$	—	$	273	$	(79	)	$	194
Six Months Ended March 31, 2022
Revenues from external customers(2)(3)	$	1,217	$	669	$	97	$	1,983	$	77		$	2,060
Income (loss) before income taxes(4)	$	186	$	122	$	—	$	308	$	(254	)	$	54

(1)Unallocated and Other includes certain items and eliminations necessary to reflect management’s reporting of operating segment results. These items are reflective of the segment reporting presented to the CODM.

(2)Beginning in the fiscal year 2023, the Company began allocating energy center by-product revenue within the applicable segment’s Revenue from external customers. The Company recast prior period financial information to conform to the new presentation. The allocation of such revenue resulted in an increase of $27 million in the Reinforcement Materials segment and $3 million in the Performance Chemicals segment, respectively, with an offsetting decrease in Unallocated and Other revenue for the three months ended March 31, 2022. The allocation of such revenue resulted in an increase of $49 million in the Reinforcement Materials segment and $7 million in the Performance Chemicals segment, respectively, with an offsetting decrease in Unallocated and Other revenue for the six months ended March 31, 2022. There was no impact to the Consolidated Total Revenues from external customers.

(3)Consolidated Total Revenues from external customers reconciles to Net sales and other operating revenues on the Consolidated Statements of Operations. Revenues from external customers that are categorized as Unallocated and Other reflects royalties, external shipping and handling fees, the impact of unearned revenue, discounting charges for certain Notes receivable, and other by-product revenue. Details are provided in the table below:

	Three Months Ended March 31						Six Months Ended March 31
	2023			2022			2023		2022
	(In millions)
Shipping and handling fees	$	36		$	41		$	69	$	80
Other		(1	)		(2	)		2		(3	)
Total	$	35		$	39		$	71	$	77

(4)Consolidated Total Income (loss) before income taxes reconciles to Income (loss) before income taxes and equity in earnings of affiliated companies on the Consolidated Statements of Operations. Income (loss) before income taxes that are categorized as Unallocated and Other includes:

	Three Months Ended March 31						Six Months Ended March 31
	2023			2022			2023			2022
	(In millions)
Interest expense	$	(23	)	$	(11	)	$	(45	)	$	(23	)
Certain items(a)
Gain on bargain purchase of a business (Note C)		—			24			—			24
Gain on sale of land		—			—			1			—
Loss on sale of business and asset impairment charge (Note D)		—			(7	)		(3	)		(204	)
Legal and environmental matters and reserves		(1	)		(7	)		(2	)		(8	)
Acquisition and integration-related charges		—			(2	)		(1	)		(3	)
Divestiture related charges		—			(1	)		—			(5	)
Global restructuring activities		—			—			—			(2	)
Other		(1	)		—			(1	)		1
Total certain items, pre-tax		(2	)		7			(6	)		(197	)
Unallocated corporate costs(b)		(16	)		(16	)		(31	)		(30	)
General unallocated income (expense)(c)		2			(1	)		6			—
Less: Equity in earnings of affiliated companies, net    of tax(d)		1			3			3			4
Total	$	(40	)	$	(24	)	$	(79	)	$	(254	)

(a)Certain items are items of expense and income that management does not consider representative of the Company’s fundamental on-going segment results and they are, therefore, excluded from Segment EBIT.

(b)Unallocated corporate costs are costs that are not controlled by the segments and primarily benefit corporate interests.

(c)General unallocated income (expense) consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, Interest and dividend income, the profit or loss related to the corporate adjustment for unearned revenue and unrealized holding gains (losses) for investments.

(d)Equity in earnings of affiliated companies, net of tax, is included in Segment EBIT and is removed in Unallocated and other to reconcile to Income (loss) from operations before income taxes and equity in earnings from affiliated companies.

Revenues from External Customers by Geographic Region

The Company’s segments operate globally. In addition to presenting Revenue from external customers by reportable segment, the following tables further disaggregate Revenues from external customers by geographic region.

	Three Months Ended March 31, 2023
	Reinforcement Materials		Performance Chemicals		Consolidated Total
	(In millions)
Americas	$	280	$	100	$	380
Asia Pacific		245		123		368
Europe, Middle East and Africa		147		103		250
Segment revenues from external customers		672		326		998
Unallocated and other						35
Net sales and other operating revenues					$	1,033

	Three Months Ended March 31, 2022
	Reinforcement Materials		Performance Chemicals		Purification Solutions		Consolidated Total
	(In millions)
Americas	$	256	$	110	$	16	$	382
Asia Pacific		258		138		6		402
Europe, Middle East and Africa		140		115		14		269
Segment revenues from external customers		654		363		36		1,053
Unallocated and other								39
Net sales and other operating revenues							$	1,092

	Six Months Ended March 31, 2023
	Reinforcement Materials		Performance Chemicals		Purification Solutions		Consolidated Total
	(In millions)
Americas	$	521	$	189	$	—	$	710
Asia Pacific		518		249		—		767
Europe, Middle East and Africa		276		174		—		450
Segment revenues from external customers		1,315		612		—		1,927
Unallocated and other								71
Net sales and other operating revenues							$	1,998

	Six Months Ended March 31, 2022
	Reinforcement Materials		Performance Chemicals		Purification Solutions		Consolidated Total
	(In millions)
Americas	$	465	$	200	$	43	$	708
Asia Pacific		508		275		14		797
Europe, Middle East and Africa		244		194		40		478
Segment revenues from external customers		1,217		669		97		1,983
Unallocated and other								77
Net sales and other operating revenues							$	2,060